Circular on Issues Relevant to the Collection of Individual Income Tax on the Income from the Transfer of Restricted Shares
Circular on Issues Relevant to the Collection of Individual Income Tax on the Income from the Transfer of Restricted Shares
Circular on Issues Relevant to the Collection of Individual Income Tax on the Income from the Transfer of Restricted Shares
Guo Shui Han [2010] No. 23
January 18, 2010
To the local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan and the state taxation bureaus of Tibet Autonomous Region, Ningxia Hui Autonomous Region, and Qinghai Province,
In accordance with the Circular of the Ministry of Finance, the State Administration of Taxation, and the China Securities Regulatory Commission on Issues Relevant to the Collection of Individual Income Tax on the Income from the Transfer of Restricted Shares of Listed Companies by Individuals (Cai Shui [2009] No. 167), the individual income tax on the income from the transfer of restricted shares shall be collected in the manner of withholding and prepayment by the securities institution in question in combination with the declaration by the taxpayer for settlement of tax and direct withholding by the securities institution. In order to do a good job in the collection of the individual income tax on the income from the transfer of restricted share, we hereby notify relevant issues as follows.
I. Issues concerning the collection of the individual income tax on the income from the transfer of restricted Shares in the manner of withholding and prepayment by a securities institution
1. The individual income tax on the income from the transfer of restricted shares forming before the technical and institutional preparation of the securities institution is finished shall be collected in the manner of withholding and prepayment by the securities institution in combination with the declaration by the taxpayer for settlement of tax. All tax authorities may choose any of the following manners of tax collection by taking your respective local practical situations, such as whether the account for funds preserved by tax authority is opened and whether it is simple and convenient for tax refund to individuals, into consideration:
(1) Security of tax payment.
......
Guo Shui Han [2010] No. 23
January 18, 2010
To the local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan and the state taxation bureaus of Tibet Autonomous Region, Ningxia Hui Autonomous Region, and Qinghai Province,
In accordance with the Circular of the Ministry of Finance, the State Administration of Taxation, and the China Securities Regulatory Commission on Issues Relevant to the Collection of Individual Income Tax on the Income from the Transfer of Restricted Shares of Listed Companies by Individuals (Cai Shui [2009] No. 167), the individual income tax on the income from the transfer of restricted shares shall be collected in the manner of withholding and prepayment by the securities institution in question in combination with the declaration by the taxpayer for settlement of tax and direct withholding by the securities institution. In order to do a good job in the collection of the individual income tax on the income from the transfer of restricted share, we hereby notify relevant issues as follows.
I. Issues concerning the collection of the individual income tax on the income from the transfer of restricted Shares in the manner of withholding and prepayment by a securities institution
1. The individual income tax on the income from the transfer of restricted shares forming before the technical and institutional preparation of the securities institution is finished shall be collected in the manner of withholding and prepayment by the securities institution in combination with the declaration by the taxpayer for settlement of tax. All tax authorities may choose any of the following manners of tax collection by taking your respective local practical situations, such as whether the account for funds preserved by tax authority is opened and whether it is simple and convenient for tax refund to individuals, into consideration:
(1) Security of tax payment.
......